04/30/2026
From the Massachusetts Funeral Directors Association
A lack of funeral planning will likely leave many Americans in debt, providing more evidence of the value of preplanning and prefunding end-of-life arrangements, a new study has found.
The study, conducted by CardRates.com, an organization dedicated to educating consumers on credit card usage, found that 58 percent of all adults surveyed said they would need to borrow money to pay for a funeral. The study also found that 26 percent would use a credit card to pay for services, exposing the purchaser to often burdensome interest rates.
“Without enough funds available, you may use a credit card you have on hand for all the expenses,” said Erica Sandberg, a consumer finance expert at CardRates.com. “But is it the best financial choice? Not necessarily. Adding $8,000 to a credit card with a 24 percent APR will cost $2,151 in interest if you paid it off in two years.”
The study indicated that 34 percent of consumers would take out a personal loan to pay for funeral expenses. Another 31 percent would borrow the money from family or friends.
The results of the survey highlight the advantages of prefunding funeral arrangements, which advocates have said lifts what can be a weighty burden from mourners already dealing with the emotional toll of death. “Shock and grief can cause you to not think clearly,” Sandberg said.
Prearranging a funeral and prefunding, either through a trust account or use of an insurance policy, relieves families from having to figure out financing on the fly, a decision the survey shows can save thousands of dollars in interest payments.
The need to eventually borrow money for funeral arrangements cuts across all age brackets, the study found. A total of 71 percent of respondents identifying as Gen Z said they would need to borrow, while 58 percent of Millennials said they would need to take on debt. Even older generations are not prepared, according to the study. A total of 51 percent of Gen X respondents and 52 percent of Baby Boomers would need to borrow.
While younger generations’ lack of preparedness is understandable, the failure to play ahead by Boomers and Gen X is concerning, the study reported.
“These are Americans in their peak earning years or approaching retirement, if not already retired, who have had decades to plan, yet still more than half have not,” the study said.
Having discussions now about the eventuality of death and the costs associated with it, even if part of the conversation is about which family members can help financially, is optimal, the study recommended. The survey pointed to what could be a severe financial liability for families as Americans age. Approximately 7,000 Baby Boomers are dying daily, according to government statistics.
“Our data makes it clear: While death is inevitable, millions of Americans aren’t preparing themselves for the costs associated with it,” the study concluded. “End-of-life planning is an essential part of financial planning, but most people don’t treat it as such, even older Americans.”
